Title 7 — AgricultureRelease 119-73
§1936a Use of rural development loans and grants for other purposes
Title 7 › Chapter CHAPTER 50— - AGRICULTURAL CREDIT › Subchapter SUBCHAPTER I— - REAL ESTATE LOANS › § 1936a
Summary
If the original loan or grant project stops being appropriate, the Secretary can let the borrower or grantee use property bought or improved with the funds—or money from selling it—for a different project. The new project must be in the same area, meet the loan or grant rules, and follow any extra rules the Secretary sets.
Full Legal Text
Title 7, §1936a
Agriculture — Source: USLM XML via OLRC
If, after making a loan or a grant described in section 2009d(d) of this title, the Secretary determines that the circumstances under which the loan or grant was made have sufficiently changed to make the project or activity for which the loan or grant was made available no longer appropriate, the Secretary may allow the loan borrower or grant recipient to use property (real and personal) purchased or improved with the loan or grant funds, or proceeds from the sale of property (real and personal) purchased with such funds, for another project or activity that (as determined by the Secretary)—
(1)will be carried out in the same area as the original project or activity;
(2)meets the criteria for a loan or a grant described in section 2009d(d) of this title; and
(3)satisfies such additional requirements as are established by the Secretary.
Reference
Citations & Metadata
Citation
7 U.S.C. § 1936a
Title 7 — Agriculture
Last Updated
Apr 6, 2026
Release point: 119-73